Question: QUESTION 7 K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to

QUESTION 7 K & P Construction company won a contract from

QUESTION 7 K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the contract sum as security. What due diligent should your bank perform to safeguard itself? 20 marks

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

QUESTION 1 The following information on credit and advances are found in the book of Jack and Jane bank: Letter of credit GHC40000.00 ii. Mortgage GHC23000.00 iii. Personal loan GHC2400 iv. Bankers...

Q:

QUESTION 6 As at the end of 2019 one notable bank among the first three banks which were affected by the banking sector clean-up had large number of cars and mortgages which it had taken lien over as...

Q:

QUESTION 7 K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the...

Q:

QUESTION 7 K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the...

Q:

QUESTION 7 K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the...

Q:

K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the contract sum as...

Q:

K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the contract sum as...

Q:

K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the contract sum as...

Q:

K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the contract sum as...

Q:

K & P Construction company won a contract from the government to construct a road. They approached your bank for credit advance to enable them execute the contract. They pledge the contract sum as...

Q:

Given these observations (in minutes) for five tasks of a job, determine the observed time (OT) for each task. Note: Some of the tasks occur only periodically. Also, using a performance rating of 90...

Q:

? ? ? Beauty Tech Limited ("BT") operates a chain of beauty salons in Hong Kong which is owned by its two founders Joyce Lam and Johnson Ko. Joyce and Johnson are the executive directors of BT and...

Q:

There are three cost - reduction methods used. Explain them and why they are important to the cost accountant

Q:

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...